2015-11-13T16:50:02-06:00 2014-12-31 GRANT THORNTON LLP 757 THIRD AVE 4TH FLOOR NEW YORK NY 100172013 990 2014-01-01 134052259 Media Development Investment Fund Inc % MARI BUDESA MEDI 2128071304 37 West 20th Street Suite 801 New York NY 10011 Mari Budesa CFO/Assistant Treasurer 2125990100 2015-11-13 true Scott Thompsett P00741490 2125990100 2014 2016-04-25 22:37:26Z Harlan Mandel CEO 37 West 20th Street New York NY 10011 3800674 false X www.mdif.org X 1995 NY Media Development Investment Fund invests in independent media around in independent media around the world providing the news, information and debate that people need to build free, thriving societies. 9 8 5 0 0 0 2641927 2008481 1715875 1399190 531831 362181 20600 30822 4910233 3800674 356204 80523 0 0 3255170 3343971 0 0 0 2701216 2482948 6312590 5907442 -1402357 -2106768 47169561 40824773 20544880 19146165 26624681 21678608 X MEDIA DEVELOPMENT INVESTMENT FUND, INC. (MDIF) WAS ESTABLISHED TO PLACE PROGRAM RELATED INVESTMENTS (PRIS), PRIMARILY LOW-INTEREST LOANS, TO INDEPENDENT NEWSPAPERS, MAGAZINES, NEWS AGENCIES, RADIO AND TELEVISION STATIONS, AND INTERNET-BASED MEDIA OUTLETS IN DIFFERENT COUNTRIES OF THE WORLD. MDIF OFFERS PRIS TO WORTHY INDEPENDENT MEDIA ORGANIZATIONS DEVOTED AND PERSISTENT IN PROMOTING AND EXERCISING THE PRINCIPLES OF FREE, INDEPENDENT AND RESPONSIBLE PRESS. PRIS ARE OFFERED TO SUPPORT PROJECTS THAT BROADEN AND STRENGTHEN OPERATIONS FOR WHICH THESE MEDIA ORGANIZATIONS CANNOT OBTAIN FUNDING FROM OTHER SOURCES ON ECONOMICALLY FEASIBLE TERMS. MANY OF THESE MEDIA ORGANIZATIONS ARE STARVED FOR CAPITAL BECAUSE THEY WORK IN ENVIRONMENTS CHARACTERIZED BY POORLY DEVELOPED BANKING SYSTEMS, ECONOMIES IN TRANSITION, LACK OF FRESH INVESTING CAPITAL, GOVERNMENTS THAT ARE VERY OFTEN SECRETLY OR OPENLY HOSTILE TO THE IDEA OF FREE AND INDEPENDENT PRESS, AND WHERE LENDING INSTITUTIONS CHARGE EXORBITANT, A false false 4752937 80523 MDIF provides loan financing by way of "program related investments" (PRIs), that allow non-profits to make investments in firms whose work will further their charitable mission. MDIF maintains a segregated pool of funds from which it makes loans and other PRIs. Loan repayments are recycled through the pool and loaned out repeatedly. With every PRI, MDIF provides customized training and technical assistance to its BENEFICIARIES, from the first stage of developing a business plan through to the final discharge of the loan. In addition, MDIF trains its borrowers and other media organizations in the use and transfer of Internet-based technology and its impact on the future development of media business. In determining whether to make a loan or other program-related investment, the Fund faces both political and legal risk. The Fund makes loans and other program-related investments in countries where political stability may be of concern. This type of risk is assessed before the Fund starts operations in a certain country. The legal risk may arise as a result of making loans and other program-related investments in countries with differing legal systems than those of the United States of America. Those systems are sometimes characterized by uncertainty and lack of independent legal institutions, including judiciary. The Fund's model loan contract was drafted by U.S. attorneys and the Fund has all loans reviewed by attorneys in the country of each borrower. 4752937 true true false false false false false false false true true false true false false true false true false true true true false false false false false false false true false false false false false false false false false false false false true true false false false true 25 0 true 5 true false true UK EZ PL SZ RS false false false false false false false false X 9 8 false false false false false false false true true false false true true true true true true true true false NY X MARI BUDESA 2128071852 37 WEST 20TH STREET NEW YORK NY 10011 Harlan Mandel CEO 40.0 0.0 X X 238039 0 68024 Ying-Yuen Chan Director 2.0 0.0 X 0 0 0 Sheila Coronel vice chair 2.0 0.0 X 0 0 0 Alexej fulmek director 2.0 0.0 X 0 0 0 Aryeh Neier Director 2.0 0.0 X 0 0 0 Alexander Papachristou Treasurer 2.0 0.0 X X 0 0 0 John Ryle Director 2.0 0.0 X 0 0 0 BERNARD POULET CHAIRMAN 2.0 0.0 X X 0 0 0 mohamed nanabhay Director 2.0 0.0 X 0 0 0 Mari Budesa CFO/Assistant Treasurer 40.0 0.0 X 177558 0 38154 ELENA POPOVIC SECRETARY AND GENERAL COUNSEL 40.0 0.0 X 154176 0 0 ANNA KRYNSKA CHIEF INVESTMENT OFFICER 40.0 0.0 X 140256 0 0 JAROSLAW GORA SENIOR INVESTMENT ADVISOR 40.0 0.0 X 140303 0 113611 PATRICE SCHNEIDER CHIEF STRATEGY OFFICER 40.0 0.0 X 150837 0 0 SYED KARIM DIR. OF INNOV. & DIG. STRATEGY 40.0 0.0 X 112200 0 10964 Ross Settles Sr advisor for digital media 40.0 0.0 X 136500 0 0 1249869 0 230753 10 false true true 0 2008481 2008481 PROGRAM RELATED INVESTMENTS 900099 1399190 1399190 1399190 362181 362181 0 0 0 0 0 0 0 0 0 MISCELLANEOUS 900099 30822 30822 30822 3800674 1399190 393003 0 0 80523 80523 0 676001 509705 166296 0 2010425 1819436 190989 130600 99824 30776 331957 254173 77784 194988 169175 25813 0 228523 214811 13712 87174 87174 0 0 65651 65651 293374 129598 163776 0 136501 100633 35868 236458 185253 51205 0 391062 290505 100557 428188 294908 133280 0 27466 27466 360222 360222 0 115893 86935 28958 18513 13756 4757 BANK FEES 22444 22444 FOREIGN WITHHOLDING TAXES 855 855 OTHER EXPENSES 70624 49508 21116 5907442 4752937 1154505 0 2112522 933946 175201 118063 1222648 2000000 0 0 0 0 0 0 0 0 0 0 1940878 1407430 1321881 940486 489081 381395 13559675 8030958 0 0 27669556 27952981 0 0 0 0 47169561 40824773 1166052 1002714 1900 0 0 0 0 0 0 0 0 0 0 0 19376928 18143451 0 0 20544880 19146165 X 24156325 20494722 2468356 1183886 0 0 26624681 21678608 47169561 40824773 X -2106768 -98310 -2740995 X false true X true false X 2008481 3885870 721483 2641927 2008481 11266242 0 0 2008481 3885870 721483 2641927 2008481 11266242 8716311 2549931 444988 644331 591529 529171 362181 2572200 0 2495 37049 16929 20600 26008 103081 13941523 9824335 0.18290 0.22006 X Schedule A, Part II, LIne 17 Media Development Investment Fund (MDIF) is a mission-driven investment RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 13559675 -363066 5100000 65651 8030958 22409477 1303396 10050000 103198 13559675 16475072 5275652 1880225 1129357 92115 22409477 18484177 5101200 122369 7134825 97849 16475072 17418792 4000000 724267 3582533 76349 18484177 1.00000 false false 358839 239251 119588 391309 305364 85945 571733 395871 175862 381395 PRINT 27591906 C TELEVISION 6036094 C RADIO 2706628 C ONLINE 3538960 C NEWS AGENCY 674188 C OTHER 30387 C UNREMITTED EQUITY IN NET -3028766 C EARNINGS OF EQUITY INVESTEES C 27952981 0 0 X 2824311 -98310 -98310 2922621 878053 878053 3800674 7520908 1613466 1613466 5907442 5907442 Schedule D, Part V, Line IV In March of 2008, the Board of Directors of Media Development Investment Fund established the Client Subsidy Fund ("CSF"). The Board restricted the use of the assets and earning thereon to meet budgeted shortfall between the Fund's annual operating costs and its annual non-CSF income, with the purpose of supporting the below-market interest rates charged by the Fund on its program-related loans and leases. Schedule D, Part X, Line 2 MANAGEMENT EVALUATED THE TAX POSITIONS FOR MDIF AND EACH OF THE CONSOLIDATED ENTITIES AND CONCLUDED THAT THE FUND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. WITH FEW EXCEPTIONS, THE FUND IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011, WHICH IS THE STANDARD STATUTE OF LIMITATIONS LOOK-BACK PERIOD. Schedule D, Part XI, Line 2D EQUITY IN NET EARNINGS OF INVESTEES $(688,804) Foreign Current Translation Gains $(373,187) -------------------------------------------------------- Total $(1,061,991) Schedule D, Part XII, Line 2D Adjustment for provision for doubtful program-related investments, net $1,613,466 true Central America and the Caribbean Grantmaking 25000 East Asia and the Pacific 2 Grantmaking 7481 Europe (Including Iceland and Greenland) 2 12 Grantmaking 7870 Russia and the Newly Independent States 1 4 Grantmaking 40172 North America Program Services Program Related Inv. 894028 East Asia and the Pacific Program Services Program Related Inv. 470012 Europe (Including Iceland and Greenland) Program Services Program Related Inv. 1272018 South America Program Services Program Related Inv. 2491182 Sub-Saharan Africa Program Services Program Related Inv. 821114 3 18 3 18 6028877 6028877 South America General support 25000 Europe (Including Iceland and Greenland) General Support 7870 East Asia and the Pacific General Support 7481 Russia and the Newly Independent States General Support 40172 4 true false true false false false Schedule F, Part I, Line 2 Applying for MDIF financing is a detailed process that usually takes several months. MDIF undertakes a rigorous process to fully understand a Beneficiary's business and the intended use of the funds to be granted or loaned to the organization. Potential Beneficiaries need to understand the demands that MDIF will make on them should their application be successful, such as intended and actual use of funds loaned or granted. To be eligible to apply for MDIF financing, a media outlet must have been operating legally in its home country for at least a year, although the Board may waive the one-year requirement when the Mission so requires, have an established reputation for promoting democratic institutions and practices and exercising the principles of a free, independent and responsible press, devote a significant part of editorial content or programming to be fact-based news and documentaries, independent from the influence of the government or any other interest group, offer coverage of different political opinions and promote human rights, the rights of ethnic minorities and inter-ethnic co-existence, not be owned by the government, a state agency, a foreign legal entity, or an oligarch business interest that may interfere with editorial policy for its own interests, present a detailed project aimed at broadening and strengthening the outlet's operation, have strong prospects of being able to repay the loan and becoming self sustaining, ensure that funds will be used as stipulated, and provide MDIF with unrestricted access to accounting records. Schedule F, Part I, Line 3, Column F MDIF has reported two different types of transactions on Schedule F: 1. Grants made to foreign organizations. These are detailed in Part of Schedule F and the sum reported in Part I ties back to Form 990, Part IX, Line 3. 2. Loan and equity disbursements made to foreign organizations during the current year The amounts reported in Part I, Line 3, column (f) represent the program related investments MDIF disbursed in the form of loans, finance leases and equity investments to newspaper publishers, TV and radio stations, printing houses, news agencies and online publishers in various countries. The amounts listed represent the current year expenditures. Schedule F, Part II, Line 1, Col D MDIF's primary exempt purpose is to support news outlets in countries with a history of oppression of the freedom of expression. Occasionally, MDIF will make grants to organizations in these countries to provide leading journalists with the support they need to create lasting institutions for change. Schedule F, Part IV Media Development Investment Fund, Inc. holds several program related investments outside the United States. To the extent that its ownership of these investments exceeds the thresholds for requiring a Form 926 or Form 5471, those filings have been attached to the organization's Form 990-T as required. X X false false false false false false false false false Harlan Mandel CEO 238039 0 0 0 0 0 35713 0 32311 0 306063 0 0 0 Mari Budesa CFO/Assistant Treasurer 177558 0 0 0 0 0 26634 0 11520 0 215712 0 0 0 ELENA POPOVIC SECRETARY AND GENERAL COUNSEL 154176 0 0 0 0 0 0 0 0 0 154176 0 0 0 JAROSLAW GORA SENIOR INVESTMENT ADVISOR 140303 0 0 0 0 0 113611 0 0 0 253914 0 0 0 PATRICE SCHNEIDER CHIEF STRATEGY OFFICER 150837 0 0 0 0 0 0 0 0 0 150837 0 0 0 Form 990, Part V, Line 2A THE INDIVIDUALS PERFORMING SERVICES FOR MEDIA DEVELOPMENT Investment FUND, INC (MDIF) ARE LEASED EMPLOYEES FROM AN UNRELATED ORGANIZATION, OPEN SOCIETY INSTITUTE, INC (OSI). MDIF PAYS OSI A MANGAGEMENT AND ADMINISTRATIVE FEE TO COVER EMPLOYEE COSTS, INCLUDING SALARY, BENEFITS AND OTHER ANCILLARY COSTS. TEN EMPLOYEES PROVIDING SERVICES TO MDIF RECEIVE THEIR W-2 FROM OSI. These individuals are not included on PART V, LINE 2A. FORM 990, Part VI, Line 11 THE FORM 990 HAS BEEN PROVIDED TO THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS FOR APPROVAL PRIOR TO FILING. ONCE APPROVED, A COPY OF THE FORM 990 WAS PROVIDED TO THE FULL BOARD. THE FORM 990 WAS PREPARED BY A NATIONALLY RENOWNED ACCOUNTING FIRM AND REVIEWED IN DETAIL BY THE FUND'S MANAGING DIRECTOR AND ASSISTANT TREASURER. FORM 990, Part VI, Line 12C Each officer, director, trustee and key employee of MDIF is required to annually disclose any conflicts of interest that arise by virtue of their employment, board service, or position with the College. MDIF monitors compliance with its conflict of interest policy through an annual questionnaire/disclosure statement that is distributed to these individuals. Potential conflicts are investigated immediately. FORM 990, Part VI, Line 15A THE TOP MANAGEMENT OFFICAL'S SALARY IS DETERMINED BY THE MDIF BOARD OF DIRECTORS. MDIF UNDERTAKES A LENGTHY PROCESS TO ENSURE THAT THE COMPENSATION IT PAYS IS REASONABLE. IN RELEVANT PART, THE BOARD OF DIRECTORS utilizes A COMPENSATION COMMITTEE COMPRISED OF Independent PERSONS THAT HAVE NO PERSONAL interest IN THE PROPOSED COMPENSATION ARRANGEMENT. The compensation committee may use an independent compensation consultant to advise on the appropriate compensation levels for the top management official. The compensation consultant uses benchmarking data that documents the compensation of persons holding similar positions in similar organizations. Once the compensation consultant has made its recommendations, the MDIF compensation committee approves the compensation. This final determination is then documented in committee minutes. Form 990, Part VI, Line 15B MDIF undertakes the same exact procedure for its officers and key employees as it does for its top management official. The only difference in the process is that the CEO will make the final determination about the officers' salaries. Form 990, Part VI, Line 19 The taxpayer makes its Form 990 and Form 1023 available to the public by retaining a copy of each at the addresses listed on Page 1 of this return. Any individual requesting a copy of these documents is provided that copy on the same business day. The Organization's Form 990 is also available for public inspection on www.guidestar.org. The Organization's governing documents, conflict of interest policy, and financial statements are available at the public request and at management's discretion. PART XI, Line 9 EQUITY IN NET EARNINGS OF INVESTEES $(688,804) Foreign Currency Translation Gain $(249,476) Adjustment for provision for doubtful program-related investments, net $(1,613,466) Foreign Exchange Gains $(189,250) -------------------------------------------------------- TOTAL: $(2,740,995) Digital News Ventures LLC 37 west 20th street new york NY 10011 134052259 PRI NY 0 2747933 MDIF MDLF Service Corp 37 west 20th street new york NY 10011 Agency Accoun DE NA C 0 6663 1.00000 true false false false false false false false false false false false false true true false false false false Schedule R, Part I MEDIA DEVELOPMENT Investment FUND HAS A WHOLLY-OWNED SUBSIDIARY, Digital News Ventures, LLC (WHICH IS TREATED AS A DISREGARDED ENTITY FOR US TAX PURPOSES). THIS ORGANIZATION'S PRINCIPAL ACTIVITY IS to make seed investments in news and information start-ups. Digital News Ventures invests in experimental digital products and businesses that contribute to the provision of information in the public interest.